Demand Forecasting: This involves predicting future customer demand using historical data and market analysis.
Impact of Promotions: Understanding how promotional activities like discounts and rebates affect demand is crucial for accurate forecasting.
Demand Shaping: The process of adjusting and influencing customer demand through strategies such as promotions, discounts, and rebates is known as demand shaping. It involves proactively managing demand to align with supply chain capabilities and strategic goals.
Purpose of Demand Shaping: This helps companies manage inventory, optimize production schedules, and improve customer satisfaction by aligning supply with anticipated demand.
References:
Chopra, S., & Meindl, P. (2016). Supply Chain Management: Strategy, Planning, and Operation. Pearson.
Fisher, M., & Raman, A. (1996). Reducing the Cost of Demand Uncertainty through Accurate Response to Early Sales. Operations Research, 44(1), 87-99.
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